Equity Release Latest News

Posts Tagged ‘Financial Advisers’

Why Now Might Prove to Be a Good Time to Take Out an Equity Release Plan: Given the Competitiveness of the Market

Monday, March 12th, 2012

Equity release schemes and equity release remortgage deals allow you to extract the equity tied up within the bricks & mortar of your home. The tax free cash is withdrawn usually by a lump sum or in the form of monthly income. This is a type of loan is for property owners over the age of 55 and is one of the best ways for such people & property owners to borrow money. Equity release plans typically do not need to be paid back until the sale of the home, or the borrower has died or gone into long term care.

 

Why have equity release schemes become so popular?

Homeowners opt for equity release plans for many reasons & their uses have extended beyond their original concept. Gone is the original ideology that equity release schemes would pay for pensioners essential living demands. Instead the flexibility & uses of equity release schemes have diversified into areas such as inheritance tax planning, moving home & many more besides.

They may have grandchildren entering university, and education tuition fees to pay; they may want to travel the world to meet distant relatives or loved ones; purchase a new car that maybe more economically friendly & cost saving; they may have a child that is soon to wed & needs a deposit for that first step on the property ladder; or they may want to consolidate their debts such as mortgage, loan & credit cards in order to free up & release some disposable income. These are all wonderful & purposeful reasons to choose an equity release mortgage. At the end of the day you just want to retire and relax  throughout the longest holiday of your life.

 

How to Compare Equity Release Deals

There are various providers and independent specialists and a variety of equity release remortgage deals available on the market. In the tough economic times, there are few property owners that would not benefit from an equity release deal; however many homeowners are unaware that they have a solution to their problems with an equity release loan. It is important for the retirees to understand how these UK equity release plans work and how to shop around and compare all lifetime mortgages & home reversion schemes to find the best deal available on the market.

The most convenient means to compare equity release deals is on the World Wide Web or more commonly termed – the Internet. There are many equity release providers and schemes that operate home equity loans. These include schemes such as roll-up lifetime mortgages that allow you to extract an initial lump sum with the interest being charged, & compounded onto the previous year’s balance. The flexible & now more popular scheme is the drawdown lifetime mortgage that allows you to take a smaller initial lump sum that is agreed upon at commencement of the loan and then further amounts as you wish. There are advantages and disadvantages to each.

When you compare equity release, you should work with a company that offers advice and guidance and one that has the contacts in the industry to present you with the best deals available on the market. Equity Release Supermarket has a comparison table that identifies the best interest rates, cashback deals & free valuations for you. Click here to visit the compare deals table.

 

All Equity Release Supermarket financial advisers are independent & FSA trained and accredited and it is essential that the deal that you opt for meets the FSA standards and SHIP regulations. This will ensure that you have a deal that is safe and fair.

 

Why Now Might Prove to Be a Good Time to Take Out an Equity Release Policy

A combination of the current crop of exclusives has provided a cheaper route to market for many new equity release applications. However, this is not the only reason for the equity release industry being more confident these days.

A recent spate of rate reductions for the 3 major equity release companies has resulted in some of the lowest interest rates for the past 5 years. Aviva’s recent reduction on its Lifetime Flexible drawdown plan has scuppered plans for Just Retirement to be the market leader. In fact Just Retirement has now thrown in the towel in its quest to become the cheapest lifetime drawdown scheme currently available & is now targeting other areas for domination.

 

 

The current exclusive Aviva equity release offered by Equity Release Supermarket is as follows: –

Product              –        Aviva Lifestyle Flexi Plan

Interest rate      –        5.92% fixed for life

Offers                 –        Free Valuation  PLUS £500 cashback on completion

 

If you wish to take advantage of this Aviva deal then request a quote  or contact the Equity Release Supermarket team on 0800 678 5159 where one of our advisers will be happy to assist.

 

Reasons to Consider an Interest Only Lifetime Mortgage

Wednesday, December 21st, 2011

What is an interest only lifetime mortgage? Well there are many reasons to look into interest only lifetime mortgages in order to meet the financial challenges in our current economic climate.

An interest only mortgage should always be considered before a roll-up equity release or home reversion plan. If you are looking towards protecting your inheritance & wish to pass the full estate to your beneficiaries then an only interest mortgage will do as it says on the tin. By borrowing a fixed amount & repayment of just the interest element will mean that the balance will remain exactly the same.

 

Example of an Interest Only Lifetime Mortgage

The interest only lifetime mortgage is an especially useful product for those over 55, as there are specialist equity release style interest only lifetime mortgages available. Often these plans provide historically attractive interest rates and features that assist those in retirement to plan their financial futures. Consider Stonehaven equity release, who offer several forms of their Interest Select Plan which is effectively a non-verification lifetime mortgage. With this plan you can effectively borrow a percentage of the value of the property & you can chose how much of the interest to pay – starting from £25pm upto the full interest payment.

 

What Purposes can it be used for?

Many people who are looking to consolidate debts will find the Stonehaven Interest Select style of interest only lifetime mortgage to be an attractive option for getting all debts under one single interest only payment. This kind of debt consolidation means that the actual total amount borrowed and paid monthly is thereby reduced & hopefully under control. Additionally, the lower interest payments are likely to be less than payments made over many other debts due to the considerably lower interest rates charged by credit card companies & alike.

 

Overall, this makes the payment of debts easier, as Stonehaven will automatically take payment by direct debit, and easy to plan as the total amount is taken monthly. The fixed interest rate option on an interest only mortgage is a very attractive offer. This means that regardless of the Bank of England manipulating conventional interest rates, the Stonehaven interest select plan will always remain exactly the same. For this reason and these features, is why the Stonehaven Interest Select and Stonehaven Interest Select lite (has lowest fixed interest rate at 6.13%) are so popular. More details about these plans can be found on the Equity Release Supermarket website.

 

Are Alternative Equity release Schemes Available?

There are alternative options available for those looking for equity release schemes, including other options for interest only lifetime mortgages. These could depend upon location such as Scotland & certain counties within England where we have access to specialist lenders.  It is therefore important to discuss what is right for you with an accredited independent equity release advisor who has access to the whole of the equity release & interest only mortgage market.

 

Another place to research equity release schemes and interest only lifetime mortgages is the Safe Home Income Plans (SHIP) website, which acts as a consumer safety watchdog for elderly financial products. The Stonehaven equity release products are all registered with SHIP, so these products also come with this important peace of mind. They also have the protection of being regulated by the Financial Services Authority (FSA) thereby coming under the auspices of their compensation scheme.

 

There are many reasons for those over 55 years of age to consider equity release. Many often wonder what is an interest only mortgage? They also wonder what the best options are for their specific needs and situation. While a financial advisor is best placed to help, researching SHIP qualified products like the Stonehaven Interest Select interest only lifetime mortgages often help get started.

The Equity Release Supermarket website is also a useful place to start learning about the ‘ins and outs’ of equity release. There is a lot to learn, so be sure to speak to one of our specialist financial advisers as early as possible and often to be clear about the direction your enquiry is heading.

 

Call our Freephone number 0800 678 5159 for further details on Interest Only Lifetime Mortgage Plans.

Alternatively, follow this link to request a Stonehaven equity release quote.

 

A Brief Guide To Equity Release Schemes

Tuesday, August 24th, 2010

The lack of sufficient pension provision has further created a problem to older citizens over the past few years. Thankfully, several retirement schemes have been to help such individuals. Equity release schemes in particular are set to rise in popularity as older citizens seek to use the value in their homes to cover the financial shortfall.

 

The increasing popularity of equity release schemes

Some pensioners are turning towards equity releases schemes as they consider the prospect of trying to increase their standard of living. Such schemes also help them maintain the quality of life, post-retirement. From feedback with clients, it is becoming increasingly apparent that children want their parents to lead a prosperous & enjoyable lifestyle.

 

The following is a straightforward guide for those individuals who want to opt for equity release:

Firstly understand that equity release is the term used to cover financial products which are used to release equity in the home. However, you will not have to meet any monthly payments in order to be entitled to apply for this particular scheme. Equity release schemes are divided into two main categories namely, lifetime mortgages and home reversion plans.
Lifetime mortgage schemes are one of the most common equity products. They are also popular among the older citizens as they provide a steady supply of cash to them. The cash might be given on the basis of a monthly instalment or lump sum.

 

Some of the superior advantages of equity release schemes are as follows:

• No monthly payments
• Fixed rate of interest for life
• A no negative equity guarantee

 

However, keep in mind that equity release is not the final solution for cash-flow problems. Be sure to consult an equity release advisor before arriving at a decision.

All Equity Release Supermarket financial advisers are fully qualified to give independent equity release advice.

 

Please call freephone 0800 678 5159 or visit the market leading equity release website at mark@equityreleasesupermarket.co.uk

 

 
Ask us a question